PayPal Agrees to Acquire Fraud Sciences Ltd.

SAN JOSE, Calif. & TEL AVIV, Israel--(BUSINESS WIRE)--eBay Inc. today announced that PayPal has agreed to acquire Fraud
Sciences Ltd., a privately-held Israeli company with expertise in online
risk tools, in a cash transaction with an aggregate transaction value of
approximately $169 million. Fraud Sciences’
risk tools and analytics are expected to enhance eBay and PayPal’s
proprietary fraud management systems and accelerate the development of
next generation fraud detection tools.

“Integrating Fraud
Sciences’ risk tools with PayPal’s
sophisticated fraud management system should allow us to be even more
effective in protecting eBay and PayPal's hundreds of millions of
customers around the world”

The acquisition of Fraud Sciences fits into eBay’s
recently announced plans to significantly improve trust and safety
across its sites in 2008. “Integrating Fraud
Sciences’ risk tools with PayPal’s
sophisticated fraud management system should allow us to be even more
effective in protecting eBay and PayPal's hundreds of millions of
customers around the world," said Scott Thompson, President of PayPal.

Key personnel from Fraud Sciences, including Yossi Barak, Fraud Sciences’
COO, and founders Shvat Shaked and Saar Wilf, will join the company’s
technology and fraud management teams. Gadi Maier, Fraud Sciences'
President and CEO, will provide strategic and operational support to the
company during the integration period.

This acquisition, which is subject to the satisfaction of certain
conditions, is expected to close within the next 30 days. eBay does not
expect this acquisition to have a material impact on its 2008 financial
guidance issued in conjunction with its fourth quarter earnings released
on January 23, 2008.

About Fraud Sciences

Fraud Sciences is a leading innovator in online risk tools. Following
years of intensive research, Fraud Sciences has developed a technology
that differentiates between real and fraudulent transactions with
unprecedented accuracy. Using this groundbreaking technology, Fraud
Sciences offers a unique transaction verification service to manage
online fraud. Fraud Sciences is funded by BRM Capital, Redpoint Ventures
and other US and Israeli investors.

About eBay Inc.

Founded in 1995, eBay Inc. connects hundreds of millions of people
around the world every day, empowering them to explore new opportunities
and innovate together. eBay Inc. does this by providing the Internet
platforms of choice for global commerce, payments and communications.
Since its inception, eBay Inc. has expanded to include some of the
strongest brands in the world, including eBay, PayPal, Skype,
Shopping.com, and others. eBay Inc. is headquartered in San Jose,
California.

About PayPal

PayPal is the safer, easier way to pay and get paid online. The service
allows anyone to pay without sharing financial information and gives
consumers the flexibility to pay in any way they prefer, including
through credit cards, bank accounts or account balances. With more than
57 million active accounts in 190 markets and 17 currencies around the
world, PayPal enables global ecommerce. PayPal is an eBay company. More
information about the company can be found at https://www.paypal.com.

This announcement contains forward-looking statements, including
statements regarding eBay, PayPal and the expected impact of the
acquisition of Fraud Sciences on eBay's financial guidance. Those
statements involve risks and uncertainties, and actual results could
differ materially from those discussed. Factors that could cause or
contribute to such differences include, but are not limited to, the
possibility that the transaction may not close, the reaction of
competitors to the transaction, the possibility that integration
following the transaction may be more difficult than expected, and the
possibility that the expected benefits of the transaction may not
materialize to the extent expected or at all. More information about
potential factors which could affect eBay's business and financial
results is included in eBay's Annual Report on Form 10-K for the year
ended December 31, 2006 and eBay's Quarterly Reports on Form 10-K. All
forward-looking statements are based on information available to eBay on
the date hereof, and eBay assumes no obligation to update such
statements.